The Economic Effect of the European Commission´S Actions Against the Coca Cola Company
* The Economic Effect of the European Commission´s actions against The Coca Cola Company
Maastricht University | | | | School of Business & Economics | | | | Place & date: | Maastricht, 7.12.2012 | | | | Name, initials: | Krapp, Fabian | | For assessor only | | ID number: | I6049414 | | 1. Content | | Study: | Economics | | 2. Language structure | | Course code: | EBC1010 | | 3. Language accuracy | | Group number: | 01 | | 4. Language: Format & citing/referencing | | Writing tutor name: | Gaye van Denderen | | Overall: | | Writing assignment: | Main Paper (Task 10) | | Advisory grade | | | | | Assessor’s initials | |
Your UM email address: f.krapp@student.maastrichtuniversity.nl
* The Economic Effect of the European Commission´s actions against The Coca Cola Company
* Table of Contents * 1. Introduction p.2 * 1.1 Background to the Case p.2 * 2. Loss of Welfare due to Market Power p.3 * 2.1 Economic Effect of the Commitments on Market Competition p.5 * 3. Conclusion p.6
* 1 Introduction
The Coca Cola Company (TCCC) is an American corporation and manufacturer especially known for its soft drinks like Coca Cola or Fanta. It sells over 3500 products, is available in over 200 countries and has revenues of nearly 50 billion us-dollars (Coca Cola Company, 2011). After Coca Cola was accused by the European commission (EC) to have abused its market power, Coca Cola gave in and set up commitments to prove that it does not abuse its power. They promised no exclusivity arrangements, no target or growth rebates, no use of its stronger brands to sell other less strong brands and finally a 20 percent free space in their coolers for other products and brands. These commitments were accepted by the EC. This essay explains why the EC is concerned about the abuse of market power and analyzes the commitments stated by the coca cola company in its economic terms and how they
Maastricht University | | | | School of Business & Economics | | | | Place & date: | Maastricht, 7.12.2012 | | | | Name, initials: | Krapp, Fabian | | For assessor only | | ID number: | I6049414 | | 1. Content | | Study: | Economics | | 2. Language structure | | Course code: | EBC1010 | | 3. Language accuracy | | Group number: | 01 | | 4. Language: Format & citing/referencing | | Writing tutor name: | Gaye van Denderen | | Overall: | | Writing assignment: | Main Paper (Task 10) | | Advisory grade | | | | | Assessor’s initials | |
Your UM email address: f.krapp@student.maastrichtuniversity.nl
* The Economic Effect of the European Commission´s actions against The Coca Cola Company
* Table of Contents * 1. Introduction p.2 * 1.1 Background to the Case p.2 * 2. Loss of Welfare due to Market Power p.3 * 2.1 Economic Effect of the Commitments on Market Competition p.5 * 3. Conclusion p.6
* 1 Introduction
The Coca Cola Company (TCCC) is an American corporation and manufacturer especially known for its soft drinks like Coca Cola or Fanta. It sells over 3500 products, is available in over 200 countries and has revenues of nearly 50 billion us-dollars (Coca Cola Company, 2011). After Coca Cola was accused by the European commission (EC) to have abused its market power, Coca Cola gave in and set up commitments to prove that it does not abuse its power. They promised no exclusivity arrangements, no target or growth rebates, no use of its stronger brands to sell other less strong brands and finally a 20 percent free space in their coolers for other products and brands. These commitments were accepted by the EC. This essay explains why the EC is concerned about the abuse of market power and analyzes the commitments stated by the coca cola company in its economic terms and how they
References: Barnett, T. (31. October 2007). Maximizing Welfare through technological Innovation. From www.justice.gov: http://www.justice.gov/atr/public/speeches/227291.htm Coca Cola Company, C. C. (31. December 2011). Anuual Report of Exchange. Von www.sec.gov: http://www.sec.gov/Archives/edgar/data/21344/000002134412000007/a2011123110-k.htm Comission, E. (2006). Competition in Practice - Coca Cola. European Comission, E. (2006). Coca Cola. Perloff. (2012). Microeconomics. England: Pearson. Report European Comission, C. (2010). Report on competition policy . Brussels.